/ 19 January 2011

Goldman Sachs posts steep quarterly profit drop

United States investment bank Goldman Sachs on Wednesday said fourth-quarter profit dropped 52% amid falling revenue, dragging down full-year 2010 earnings by 38% from a year ago.

Goldman posted fourth-quarter profit of $2,39-billion, a 52% decline from the same period a year earlier.

For all of 2010, the New York-based bank said profits fell 38% from 2009, to $8,35-billion.

Profits were slightly above market expectations. Earnings per common share were $3,79 in the fourth quarter and $13,18 for the year. Analysts had estimated $3,76 and $13,14, respectively.

But revenue results were worse than expected.

Goldman, one of Wall Street’s most prestigious banks, said fourth-quarter revenue fell 10% from a year ago, to $8,6 billion, while for the full year revenue was down 13%, at $39,2-billion.

The average estimate was for $9-billion in the October to December period and $39,49-billion in the year.

“Market and economic conditions for much of 2010 were difficult,” Lloyd Blankfein, Goldman chairperson and chief executive, said in a statement.

“Looking ahead, we are seeing signs of growth and more economic activity and we are well-positioned to help our clients expand their businesses, manage their risks and invest in the future.” — AFP